Hamfatter - this really is the name of the band - are releasing their single The Girl I Love today in order to capitalise on their Dragons' Den appearance. It's an incredibly risky - translation, idiotic - tactic. Indie may be at its most eyewateringly commercial point in living memory but notions of credibility remain, and all publicity is still not good publicity. By going on Dragons' Den they have sacrificed their credibility for 48 hours of media attention. It's a mistake, because Peter Jones and his moody pals are not the only people in suits and posh shoes throwing their money around. With the music industry asking itself some difficult questions about new signings, artists are increasingly seeking private investment and there's a whole world of hedge funds and six-figure-bonus City boys with chequebooks ready and waiting. In fact, MySpace is full of artists funded in this way.

Two weekends ago I was talking with a British singer who, following success in the 1980s, had fallen off the major label radar. Earlier this year, however, a knight in shining armour arrived with enough money to fund a new album. It gives the singer enough cash to employ the right producers and take time on a new album. Moreover, this new label boss is a genuine fan who's allowing his artist the space and creative freedom to make the album they want to make. For the investor it's win/win: he might make a return on his investment, but if he doesn't then he's got a new album by one of his favourite artists, and it's money the tax man won't be getting.

The band on Dragons' Den are slightly different. The Dragons would expect to see a return on their investment, and this is a bit like Terra Firma's acquisition of EMI on a microscopic scale. The problem is that £75,000 doesn't go far. It is possible to pull off the DIY technique in the short term, but there's only so long you can call in favours from mates when it comes to artwork, video production, press, TV and radio plugging, studio time, equipment, touring costs and all the rest. Those people need to make a living, and so do you. You might not have to spend £20,000 on a tour - that's how much the majors spend on the average indie band's national tour - but you need to eat, pay the gas bill. Being in a band and running your own label, and doing it properly, is a full time job.

Hamfatter (that name again!) may have thought that going into the Den would be a great bit of PR, regardless of whether they got the cash. They were wrong. If their name is remembered in twelve months it will only be because it is so unforgettably heinous, and this cheap publicity stunt, like Sandi Thom's notorious "internet sensation" spin, is incredibly short-termist. This TV appearance will not give the band a hit of any value.

Whatever changes take place in the music industry, one thing will remain true: not all artists capable of making music are any good at it, or deserve a record deal. 99% of all bands proudly flying the flag for the DIY revolution would gladly throw their CDRs and handmade flyers out of the nearest window at the slightest whiff of genuine interest from a record label. They are DIY not because they choose to be but because they have to be - because they are terrible, and uninvestable. But there are some fat wallets out there who might be able to help out.

Just one though, though. Think of the people you know who work in the city. Consider their CD collection. Remember their tales of how brilliant Bon Jovi were last month. Ask yourself: would you trust these people with the future of music? And with that in mind, I'm out.